MicroStrategy Inc., the leading intelligence and software company, is on the verge of making significant moves in the cryptocurrency market with its latest initiative concerning Bitcoin acquisitions. Recently, the company submitted a proxy filing to the SEC to convene a special shareholders meeting aimed at enhancing its ambitious 21/21 Plan, which involves a projected $42 billion in Bitcoin purchases. This Sunday, we will delve into the implications of MicroStrategy’s recent actions.
According to the proxy filing dated December 23, 2024, MicroStrategy seeks to increase its authorized shares for both Class A common stock and preferred stock. The objectives are to raise the authorized shares of Class A stock from 330 million to a staggering 10.33 billion shares, and preferred stock from 5 million up to over a billion shares. This marks a pivotal move, providing the company with greater financial agility to execute its Bitcoin acquisition plans effectively.
The strategic 21/21 Plan, first disclosed in October, outlines not only the significant goal of purchasing additional Bitcoin but also showcases MicroStrategy’s expedited execution of the plan. The company has already raised about $13 billion through stock issuances and an extra $3 billion via convertible bonds. These financial maneuvers support a robust framework aimed at fetching an additional $21 billion through equity sales, complemented by another $21 billion through fixed-income securities.
Furthermore, it’s noteworthy that MicroStrategy has intensified its Bitcoin accumulation, purchasing 42,162 BTC in December alone, valued at over $4 billion based on current market rates. As of December 22, the company had amassed a staggering total of approximately 444,262 BTC, equating to an incredible market worth of around $43.53 billion. This accumulation highlights the success of their strategy, especially when considered alongside an average purchase cost of $62,257 per BTC.
In light of these developments, it’s no surprise that MicroStrategy’s stock has surged by over 422% year-to-date, clearly showcasing the strong market confidence generated by its Bitcoin holding strategy. The upcoming special shareholders meeting aims to provide a platform for shareholders to approve these pivotal changes, with the date yet to be disclosed. As the company gears up for its next earnings report on February 2, 2025, keen investors will follow these developments closely.
